
— We have a strong plan ahead of us that allows us to Together, decision our country forward “Said Friedrich Merz, CDU leader. — First of all, this is simply a very strong and clear signal to the citizens of our country, as well as to our citizens partners in the European Union. Germany receives a government that is capable and strong.
Agreement that was concluded 45 days after Chadec Merza won the early election, was reached rapidly for Germany, where post-election coalition negotiations between the parties to regulation could last for months.
The agreement opens the way for Merz, the leader of the centre-right Christian-Democratic Union, to curse in to another German Chancellor, most likely in early May.
Double shock
The coalition agreement comes at a minute of deep uncertainty for Germany and Europe after Trump last week imposed 20% duties on the European Union, which can peculiarly hit the export-oriented German economy. It besides appears when Merz promises strengthen your country's army in consequence to the threat Putin poses to Europe and the weakening of the transatlantic alliance, which Germany has long relied on in defence.
These double shocks — for the European economy and safety — have increased the force on Merza and his SPD colleagues to rapidly make a stable, responsive government. Since the breakdown of the three-party coalition in November last year due to misunderstandings on expenditure Germany is led by a weak number government led by outgoing Chancellor Olaf Scholz.
— We conducted coalition negotiations in a situation of increasing global political tensions, in a situation where many forces from within and from outside He's not working with us, but against us. “Merz said. “The war in Ukraine continues continuously. Russian aggressor Putin shows no will to end the war and silence the weapons, while economical uncertainty increases enormously.
He admitted that the U.S. government's decisions had "caused fresh turbulence". — We do not yet know where the global situation will go.. But that is why today’s message is more clear: we want and aid form planet change for Germany,” he added.
Despite Merza's promise to guarantee strong German leadership in Europe, as organization leader he does not leave coalition negotiations unharmed. His landmark agreement with the SPD and the Greens on the release of hundreds of billions of euro fuelled by public debt Defence and infrastructure expenditure was mostly appreciated abroad, but caused discontent among part of his conservative electorate In the country.
It besides provoked attacks from far-right alternate to GermanyTo become The largest opposition organization in the Bundestag\. Support for Merz Has fallen rapidly since the chadek victory in the election.
Several points in dispute
The last phase of negotiations between conservatives and SPD brought any key points of dispute on issues specified as taxation cuts, the economy and migration. Merz said the compromise agreement would strengthen ‘price competitiveness’ of Germany through taxation cuts and taxation incentives to invest in equipment, and the fresh government will reduce corporate income taxation by 1% per year in 5 equal steps from 2028.
Merz promised to reduce the advanced electricity costs in Germany, The coalition will reduce the electricity taxation to a European minimum, reduce network charges and introduce an industrial electricity price.

Markus Soeder, CSU leader, and Friedrich Merz, CDU leader. Berlin, 9 April 2025.
However, migration has proved to be 1 of the most politically demanding issues at the end of the talks. Faced with force from the right flank Chadeci insisted on rejecting asylum seekers at the German border. The SPD opposed this, claiming that specified a decision would alienate Germany's neighbours at a time erstwhile the country needed EU solidarity in the fight against Trump tariffs.
In the end, both sides reached an agreement that seemed to bypass the most extremist proposals, but inactive peeled a much sharper line, and Merz promised "to a large degree to end illegal migration"through checks at national borders, including "rejection of asylum seekers". Merz added that the government would launch a "repatriation offensive", suspend household reunification and increase the number of countries which Germany considers safe countries of origin whose citizens do not have asylum. Lars Klingbeil, 1 of the SPD leaders, however, said that the agreement will hold what it called the "basic right" to asylum and will keep Germany as a "country of immigration".
Merz, asked by journalists what is his message to Trump, tried to introduce his country as a strong partner for the US. “ The Germans are back on track, ” replied the future chancellor in English. — Germany will fulfil its defence obligations. Germany is ready to strengthen its competitiveness.
Coalition Agreement has yet to be voted by SPD membersThe CDU and CSU, parties belonging to the Chadetic block of Merza, do not require the full voting agreement to be approved.